CARMAX INC recently released its latest 10-Q report. CarMax, Inc. operates through two segments: CarMax Sales Operations, which handles used vehicle retailing and related services, and CarMax Auto Finance, which provides financing to retail customers buying from CarMax. The company was founded in 1993 and is based in Richmond, Virginia.
In Item 2, management said CarMax remained the nation’s largest retailer of used vehicles and reported that, after 3-day payoffs and returns, CAF financed 43.3% of retail used vehicle unit sales in the first three months of fiscal 2027. As of May 31, 2026, CAF serviced about 1.1 million customer accounts, including a $16.71 billion auto-loan portfolio and $700 million of auto loans previously sold.
For the quarter ended May 31, 2026, CarMax reported net sales and operating revenues of $8.013 billion, up 6.2% from a year earlier. Gross profit fell 4.4% to $854.4 million, while CAF income slipped 1.0% to $140.2 million and net earnings declined 11.8% to $185.6 million.
Used vehicle sales revenue rose to $6.391 billion from $6.103 billion, even though used unit sales were essentially flat at 230,293 versus 230,210. Average used-vehicle selling price increased 4.5% to $27,288. Wholesale vehicle sales revenue climbed 14.0% to $1.428 billion, with wholesale unit sales up 8.4% to 162,064 and average wholesale selling price up 5.1% to $8,364.
CarMax said used gross profit per unit fell 9.6% to $2,177, while wholesale gross profit per unit was nearly unchanged at $1,046. SG&A expense declined 3.7% to $635.2 million, and SG&A per total unit improved 6.8% to $1,619.
Online and digital activity remained a major part of the quarter: digitally enabled transactions reached 84%, omni sales were 70%, and online retail sales were 14%. Total vehicle purchases were 321,654, down 4.4%, including 280,693 vehicles bought from consumers and 40,961 from dealers.
Management said leverage remained slightly above target and share repurchases stayed paused during the quarter. It also said it is targeting $200 million in exit-rate SG&A savings by the end of fiscal 2027, expects used margins for the full year to decline by about $200 per unit, and is planning four store openings, two stand-alone auction facilities, and one additional reconditioning/auction center later in the fiscal year. Following these announcements, the company's shares moved -1.79%, and are now trading at a price of $50.98. For more information, read the company's full 10-Q submission here.
